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The AES Corporation
AES : NYSE : Utilities
$9.00 -0.53 | -5.56%
Today's Range: 8.97 - 9.40
Avg. Daily Volume: 6,243,800
02/11/16 - 4:00 PM ET

Financial Analysis


AES CORP's gross profit margin for the third quarter of its fiscal year 2015 has increased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. AES CORP has weak liquidity. Currently, the Quick Ratio is 0.72 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 18.87% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q3 FY15 Q3 FY14
Net Sales ($mil)3721.04441.0
EBITDA ($mil)911.01034.0
EBIT ($mil)628.0722.0
Net Income ($mil)180.0488.0


Balance Sheet Q3 FY15 Q3 FY14
Cash & Equiv. ($mil)2231.02843.0
Total Assets ($mil)37000.038983.0
Total Debt ($mil)20698.021066.0
Equity ($mil)3567.04397.0


Profitability Q3 FY15 Q3 FY14
Gross Profit Margin25.6924.3
EBITDA Margin24.4823.28
Operating Margin16.8816.26
Sales Turnover0.420.43
Return on Assets1.610.91
Return on Equity16.739.39
Debt Q3 FY15 Q3 FY14
Current Ratio1.111.12
Debt/Capital0.850.83
Interest Expense388.0390.0
Interest Coverage1.621.85


Share Data Q3 FY15 Q3 FY14
Shares outstanding (mil)674.46715.96
Div / share0.10.05
EPS0.260.67
Book value / share5.296.14
Institutional Own % n/a n/a
Avg Daily Volume6231163.06717322.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 101.89 for the Independent Power Producers & Energy Traders industry and a discount compared to the S&P 500 average of 21.13. Conducting a second comparison, its price-to-book ratio of 1.85 indicates a discount versus the S&P 500 average of 2.51 and a premium versus the industry average of 1.20. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. The valuation analysis reveals that, AES CORP seems to be trading at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AES 11.53 Peers 101.89   AES 3.20 Peers 10.36

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

AES is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

AES is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AES 9.07 Peers 20.81   AES 1.05 Peers 2.03

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

AES is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

AES trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AES 1.85 Peers 1.20   AES 49.12 Peers 12.57

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

AES is trading at a significant premium to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

AES is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AES 0.42 Peers 3.01   AES -7.24 Peers 27.30

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

AES is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

AES significantly trails its peers on the basis of sales growth

 

 

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